MTI Newsletter

Current projects of
MACHWÜRTH TEAM INTERNATIONAL
Organisational and Personnel Development

Message from the Managing Director

Management by Objectives
Hans-Peter Machwürth
Managing Director

MACHWÜRTH TEAM
INTERNATIONAL

When we lost the sight of the In the process of target align- of working target of all com-
target we have to reduplicate ment conflicts can be seen as pany levels
our efforts. normal and should be discussed ƒ Setting of targets creates re-
in the top management levels. sponsibility in the company
organization
Working without the system of While designing and implement- ƒ Increasing of the motivation
management by objectives is ing targets the project team and intension of the internal
like misspending resources as should take care that they build communication
this system it gives all employ- up a pragmatic instrument with- ƒ Qualification of the employ-
ees of an organization a kind of out lots of bureaucracy. If not ees due to the working re-
orientation. When the feeling of maybe the instrument will not be quirements
success is missing people are accepted by the managers and ƒ Cooperation and cooperative
frustrated; this often leads to in- employees. leadership of all company le-
ternal dismissals. vels
ƒ Disclosing and prioritizing
Hans-Peter Machwürth Benefit of a target aligning competitive targets
system:

As manager… ƒ Result orientation and com- The 4 most frequently mis-

mitment of performance will takes of target alignment:
…and leader we are in charge be rewarded
of organizing business units and ƒ Manager and employees will ƒ Setting a target instead of
employees in the right way. take more responsibility for target alignment
They have to fit to the company their company ƒ Employees are not con-
culture and should work target- ƒ Realization of company tar- vinced by the targets
and result-oriented. gets through an agreement ƒ Targets are too high or too
low, employees are over-
Management by Objective s strained or targets are not
being challenging, the em-
Process of target alignme nt – pyramid of target alignment
ployee is not convinced by
)
P )
the targets
U
-
M
O
N
W
O
ƒ Unspecific target setting so
T
T
O
-D
P
O ƒ L ocatio n targ ets
that manager and employ-
B
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C om -
T
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ƒ Prod uct-/ma rket targ ets ees cannot reach an
n pany n ƒ Expa nsio n ta rgets
a
m
r
tar ge ts e
m
n
agreement of target
o g
rf
e
p
li
ta
ƒ Re du ce co sts
ƒ Incre ase lab our pro ductivi ty
achievement
ƒ
e
te
rg
D evision targe ts
rg
a
ƒ Improve re sults Conflicts because of com-
a T ƒ Red uce the rate of fl uctatio n
T petitive targets: e.g. the pur-
ƒ Red uce throu gh pu t time
De pa rtme nt targets ƒ Improve the a dhe ren ce o f sche dul es
chase department wants to
ƒ Re du ce cu sto me r compl ain order a huge amount of
ƒ Re du ce wa sta ge goods to achieve a cheap
ƒ Incre ase effe cti vene ss
Individua l ta rgets ƒ Optimi ze p erforman ce prize, but at the same time
ƒ Crea te mo re ide as of i mplro vemen t
ƒ Imp rove the motiva ti on of empl oyee s this causes a lot of costs for
the warehouse
1
M ACH WÜ RT H TEA M N
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MACHWÜRTH TEAM INTERNATIONAL • Dohrmanns Horst 19 • D-27374 Visselhövede

Phone: +49 (0) 42 62 / 93 12 - 0 • Fax: +49 (0) 42 62 / 38 12
Email: info@mwteam.com • Internet: www.mticonsultancy.com
MTI Newsletter
Current projects of
MACHWÜRTH TEAM INTERNATIONAL
Organisational and Personnel Development

Problems of implementing a
target aligning system:
The following checklist will help you to prepare target aligning discus-
Careless implementation and sions in your team or with single employees:
bad maintenance:
ƒ Insufficent management
commitment
ƒ Implemenatation just ‚en Management by Objectives
passant‘
Checkl ist of target alignment
ƒ Insufficent information and
communication Or gani zati on ƒ Are t he in divi dual t arg ets al igned wit h t he t arge ts of t he depart ment and the devision?

ƒ Insufficient handling of fear ƒ Con cerning t he t arget ful fil ling, did spec if ic ta lks conc erning t he adj ustm ent of t he t argets w ith t he other
departm ent s a nd devi si ons taken place?

and misgiving I nform ation ƒ Are t he t arge ts cle ar and understandabl e for everyone?
ƒ Is t here an agreem ent concernin g measuring t he t arget? What are the criteria?

Incomplete understanding of the in- Op ti m iz ation ƒ Are t he t arge ts chal lenging?

strument: Al locati on ƒ Whi ch res ourc es wi ll be need t o f ulfi ll t he t argets?

ƒ No changes in the culture of E m powerm ent ƒ Whi ch are t he com petences th at wi ll be need t o f ulf ill the targets ?

leadership and communica- ƒ Are t here any f orecast s or ideas what m ust be done t hat t he t arg ets can be ful fi lled?
Or ientatio n
tion
ƒ No precisely ideas about the M otiv ati on ƒ Are t he di ff erent opi nions of m anagers and em ployees are aligned?

character of targets (mixed L okom otion ƒ What are the poss ibili ti es t o reward the benef its of an em ploye e?

up with tasks) Qu ali ficatio n ƒ Are m anager and em pl oyees already f am iliar wi th t he i ns trum ent „Managem ent by Obje ct ives“ and are t hey
wel l prep ared for t he new requi rem ent s ?

Unclear alignment of targets and no

linking with other targets:
ƒ The visions of the company 2
M ACHWÜ RTH TEAM INTER NATIONAL • Do hr ma n n s Ho rs t 1 9 • D-2 7 37 4 Vis s el h ö ve d e • Ph o n e: +4 9 ( 0) 4 2 62 / 9 3 1 2 - 0 • Fa x: +4 9 (0) 4 2 62 / 3 8 1 2 • Em a li : n
i fo @m wte am .c om • In te rne t: ww w.m tic o n su l tan c y.c o m

are in transparent
ƒ No clearly strategic targets
ƒ No ‚bottom-up‘ – and hori-
zontal alignment
The different kinds of targets could be linked with different values
Shortfalls in the configuration of of the company and could be expand to a decision and reward
the instrument: system.
ƒ Targets are not concrete
ƒ Imprecisely criteria
ƒ Constricted differentiation of
targets Management by Objectives
Exam ples for differ ent kind of targets and m easuring criteria
Shortfalls in negotiations
ƒ Guidelines instead of K ind of t arge t C har ac ter is at ion Exa m ple
agreements A chiv eme nts, t hat have inf luence Mark et s hare
ƒ One-way communication S trategi c targe t
o n inc reas ing the m ark et s hare
Market ing c oncept
a nd that hav e i nfl uenc e on
ƒ Lack of commitment m ark et c om peti ti on S trategi c all ianc es

Unclear match or differentiation be- Operati ve target A chiv eme nts, t hat direcly M ake sure about the busi ness
i nfl uenc e t he benef it of t he vo lum e, operat ing res ult s ,
tween evaluation/reward and the c om pany inc om ing ord er

personnel development
P ersonal and dev elop ing A ct ivit ies of m anagers that as s is t M otiv ati on of em ployees
ƒ Lack of transparency con- targets e. g. t o t he t arget fulf il ling of t he
Qul ifi ca tion of em ploy ees
e mpl oyees and hel p t o opt im iz e
cerning consequences Targets reg ardi ng to
lead ershi p
t he ow n leading b ehaviour Opt im iz ed co mm unic at ion and

ƒ Suspiciousness deleg ation

ƒ Demotivation P ersonal and

devel opi ng tar gets e. g.
S pec ial act iv iti es to s upport
s t rategic and operativ target s
Te mporary projec t work

Im ple ment ati on of a new I T-S yst em

Targets reg ardi ng to
action s
Superficially target tracking:
ƒ No regular target controll
ƒ No evaluation of the proc- M ACHWÜ RTH TEAM INTER NATIONAL • Do hr ma n n s Ho rs t 1 9 • D-2 7 37 4 Vis s elh ö ve d e • Ph o n e: +4 9 ( 0) 4 2 62 / 9 3 1 2 - 0 • Fa x: +4 9 (0) 4 2 62 / 3 8 1 2 • Em a li : n
i fo @m wte am .c om • In te rne t: ww w.m tic o n su ltan c y.c o m
3

ess
ƒ Instrument will disappear in
the daily communication
routine of the organization
MACHWÜRTH TEAM INTERNATIONAL • Dohrmanns Horst 19 • D-27374 Visselhövede
Phone: +49 (0) 42 62 / 93 12 - 0 • Fax: +49 (0) 42 62 / 38 12
Email: info@mwteam.com • Internet: www.mticonsultancy.com
MTI Newsletter
Current projects of
MACHWÜRTH TEAM INTERNATIONAL
Organisational and Personnel Development

Management by Objectives More Information:

Golden regulations for the target aligning dialog
MACHWÜRTH TEAM
INTERNATIONAL
1 . Ma king a n a ppointm e nt 4. No continuation
You sh ould m ak e the appoint m ent one w eek i n Do not t ake it t o eas y and use the target s heet s f orm
adv anc e s o t hat your em ploy ee has enought ti me to the las t year. Try to c re ate new target s on t he basi c of Phone:
prepare f or t he dial og.. Clearif y t he t opics of the ta lk . the perform ance of t he empl oyee d uri ng the las t year.
A lign t he new target s wit h the compa ny t arg ets .
+49 (0) 42 62 / 93 12 – 0

Fax:
2 . Good pre par ation 5. Concr ete ex am ple s +49 (0) 42 62 / 38 12
M anager and em pl oyees s hould use a ta rget It does n’ t m att er if y ou want t o prais e or c ri ti ci ze your
al igning work ing s heet to prepare t he tal k seperatly. em ployee, y ou s houl d use c onc ret e ex ampl es to
They b oth sho uld thi nk about already generat ed m ak e i t cl ear. This is t he best way if y ou want t o
info@mwteam.com
t argets and sh ould def ine new t argets for t he fut ure. im plem ent new m et hods to devel op s trengt hs and www.mticonsultancy.com
reduce weak nes ses .

3 . Enough tim e 6. Com forta ble atm osphe re

E ven when y ou hav e lim it ed ti me bec aus e of your To avoi d di s tanc e during t he i ntervi ew y ou s houl d
dai ly work amoun t t he appraisal i ntervi ew should take care of a com fortabl e atm osphere. The
t ak e plac e wi thout any pres su re of t im e. em ployee sho uld fee l c om fort able to tal k about his
worries. Do not inti m idate hi m.

4
M ACHWÜ RTH TEAM INTER NATIONAL • Do hr ma n n s Ho rs t 1 9 • D-2 7 37 4 Vis s el h ö ve d e • Ph o n e: +4 9 ( 0) 4 2 62 / 9 3 1 2 - 0 • Fa x: +4 9 (0) 4 2 62 / 3 8 1 2 • Em a li : n
i fo @m wte am .c om • In te rne t: ww w.m tic o n su l tan c y.c o m
MTI

MACHWÜRTH TEAM INTERNATIONAL • Dohrmanns Horst 19 • D-27374 Visselhövede

Phone: +49 (0) 42 62 / 93 12 - 0 • Fax: +49 (0) 42 62 / 38 12
Email: info@mwteam.com • Internet: www.mticonsultancy.com